Earlier this week the online gaming world saw PartyGaming buy out bingo operator Cashcade. PartyGaming paid a staggering £71.9m to take over the company who owns big bingo names such as Foxy Bingo and Think Bingo. The company paid out using its own money but is rumored to seek help from banks if they wish to make any further investments which is planned to aid them in dominating the online bingo industry.
Analysts have explained this take over as a phenomenal deal with excessive benefits. Whilst the buy out was extremely expensive analyst Peel Hunt said “PartyGaming feels that this was a sensible enhancement and estimate profits will increase by 4% in the first year making profits reach £99m before tax and by 2010 they should be reaching £115m”.
Whilst this is of course a fantastic deal for PartyGaming it has left the rest of the online bingo operators feeling threatened and completely left behind as PartyGamng stride to be market-leaders leaving little room for competition. If PartyGaming go on to make more purchases then we may see them take over the entire online gaming world.
